Forest Incentive Programs - Property Taxes for Minnesota

Type of Tax

Under the Sustainable Forestry Incentive Act (SFIA) landowners receive an annual incentive payment. The payment is either the difference between FMV and current use value or 2/3’s the average of the previous year’s statewide average property tax/acre levied on forest land. Landowners receive whichever payment is higher with a minimum payment of $1.50/acre.

Law

1 SP2001 CS art 8 Sec 5 290C

Objective

Promote sustainable forest resource management and encourage the state's private forest landowners to make a long-term commitment to sustainable forest management.

Requirements

Minimum of 20 acres at least ten percent stocked by trees of any size and capable of producing timber, or of exerting an influence on the climate or on the water regime

A management plan created by a DNR approved forester

Minimum enrollment is 8 years and landowner must submit an annual letter of participation to DOR

No delinquent property taxes

Land over 1,920 acres must allow nonmotorized public access

Early withdrawal or use change results in a fine of the previous 4 years incentive payments plus interest

Program Administration

Department of Revenue processes applications and annual letters of participation. County assessor determines value of forest land based on highest and best use. Local auditors assess property values. Department of Revenue calculates and administers incentive payments.